JEDDAH/AMMAN: Saudi stocks resumed their downward trend last week after rebounding the previous week despite better than expected results for the first half of the year.

The Tadawul All-Share Index (TASI) plunged 3.75 percent, closing at 8,740.74 points from 9,080.87 points in the previous week.

TASI is currently 20.82 percent lower than the year’s start.

The weekly report of the Riyadh-based Bakheet Investment Group (BIG) said the market ignored the record semi-annual profits announced by leading firms, particularly the Saudi Basic Industries Corp. (SABIC), the Saudi Fertilizers Co. (SAFCO) and the Saudi Telecom Co. (STC).

“The market has been influenced negatively by investors’ hesitancy resulting from external factors, foremost Iran’s conflict with the West and falling crude prices,” the BIG said.

“Barring any adverse regional developments, the market is set to rebound, given the fall of stock prices to attractive buying levels,” it added.

The stock market turnover was over SR38.78 billion last week.

Saudi Arabian Mining Co. (Maaden), which started trading on Monday, was the top gainer last week. After jumping over 50 percent on debut, Maaden’s shares closed 38.75 percent higher at SR27.75. Maaden was most active by volume and value last week. Over SR15 billion worth of Maaden shares changed hands last week. Saudi Arabia Refinery Co. (SARC) shares surged by 24.71 percent to SR188 last week.

Saudi Fransi Cooperative Insurance Co.’s shares plunged 15.68 percent last week to close at SR82.

Shares in Saudi Basic Industries Corp. (SABIC) dropped by 6.50 percent to SR129.50 last week.

Arab stock markets last week ignored the positive results for the first six months of the year, as investors appeared hesitant due to political developments, particularly the standoff over Iran’s nuclear file, and retreating oil prices, financial experts said yesterday.

“We believe that markets have been affected before anything else by geopolitics and receding oil prices,” Wajdi Makhamreh, chief operating officer of the Amman-based Sanabel International Holding, told Arab News.

“However, we believe that regional markets will benefit in the long-term from lower oil prices because they give boost to the world economy, particularly in the United States,” he said.

Makhamreh predicted that Arab bourses would be in a “consolidation phase” in the coming couple of months, pending new moving factors.

Jordanian shares also extended losses last week as investors were forced to close their positions before the start of August.

The all-share price index of the Amman Stock Exchange shed 1.74 percent last week, closing on Thursday at 4,629 points, according to the ASE weekly report.

Kuwait’s KSE all-price index edged higher, closing at 14,977 points compared with 14,807 points previous week.

The GulfBase GCC Index also declined 2.04 percent to close at 6,632.66 points. The value of GCC traded shares fell 11.07 percent to $13.89 billion and volume plunged 31.11 percent to 2.94 billion of shares.

BMG turnover dips

The BMG Saudi Index ended last week on a negative note, falling by 4.3 percent week-on-week to reach a closing level of 476.22 points, due to its losses in four trading sessions throughout the week. The total market turnover also descended, week-on-week, by a strong 43.9 percent, due to the concentration of investors in Maaden. The turnover was SR9.6 billion ($2.6 billion) last week, compared to SR17.1 billion ($4.6 billion) registered in the previous week. The number of shares traded also depreciated by a strong 41.1 percent to reach 236.8 million shares, compared to previous week’s 395.6 million shares. The average price-earnings (P/E) ratio for 2007 earnings was 28.3 times, while the price-to-book (P/B) ratio was 4.4 times.

The majority of sectors performed negatively, with the exception of the telecommunications sector, which stood still.

Twenty-seven shares witnessed a week-on-week drop in their share prices, whilst two shares — Zain KSA and Saudi Kayan Petrochemicals — witnessed no change in their share prices and both closed at SR23 per share.